One of the common myths about the wholesale business is the need for having a re-selling license or tax I.D in order to achieve wholesale success. Now, getting a business license I.D is necessary if you incorporate your wholesale or re-selling business. Not only that, but it is important to get a business license if you plan to sell $100,000 or more from your retail, wholesale or re-selling business.
However, there is no need to get a business license simply to be able to purchase wholesale as there are many wholesalers and distributors that will cut you deals for wholesale merchandise in single or in bulk amounts without having to violate the law or without to carry a reselling license- of course depending on your state. As always, that will solely depend on the state and country you are currently allocated.
To be sure, there are different laws that regulate reselling and wholesale businesses in many states in the USA, however, that does not mean you need a business license to sell wholesale merchandise. For example, Maxam Wholesale is a nationally known manufacturer and wholesaler that has been around for decades- and best of all, they do not require you to have a business license or tax ID in order to purchase their wholesale merchandise. Meaning that you can build an Internet mini-mall virtually in few hours depending on your web technical experience or you can simply outsource such a job. It is that simple.
Granted, most of the wholesalers with websites where you can apply to be a dealer require that you enter a tax ID, re-selling license or both. However, an easy technique you can use to eliminate this kind of hassle is to establish a relationship with the distributor or wholesaler by calling them, rather than applying online with their regular forms. The phone is where the magic happens in my experienced.
You get to speak with the person directly instead of with a so-called mummy that I like to call, emails. In a nutshell answer, simply let the wholesaler know that you are very interested in finding out various catalog wholesale prices in order to place orders that day. You definitely need a little more than that, but you definitely get the picture. Go as creative as you would like and test the results and gain experience. That is everything I do in my wholesaling.
More than 90% of the time the wholesalers and distributors will either send you their wholesale catalog through the mail or, better yet, they will give you a username and password immediately so you can access the prices in their online catalog. Depending on how you presented and requested the information. Same situation that happens in regular business offline with communication, definitely applies online in many of the same ways.
Once you have done such steps, you can start buying directly from the wholesaler or distributor online or by phone without owning a business license or tax identification number. But remember, you should always check with a legal advisor to assure yourself of the state validity to sell tangible merchandise. What happens if they reject your catalog request? Simple. You provide them with your social security without them having to ask for it. This will show your seriousness about dealing with them and, more often than not, will get you up and running.
In conclusion, needing a business license for an unincorporated start up wholesale business is a myth in many countries and even states. You should always look the information directly from the source. I started as a sole proprietor when business and profits were small, with time, you will probably have to upgrade your status to LLC, Corp or own a re-selling license because of the growing of sales. Start cold calling every wholesaler and distributor you think will be profitable for you, and start getting results instantly.
Taxpayers have several options when they are confronted with a tax situation. Some of these tax situations include an official notice, overdue tax returns, tax liens, wage garnishment or appeals. The tax matter could be as simple as a tax return preparation or as severe as an investigation for tax evasion by the CID (the criminal investigation division of the IRS). Under the Taxpayers? Bill of Rights, a taxpayer is entitled to have a professional deal with any IRS issue.
Selecting the right tax professional can be your best option to effectively solve any pending tax issues. This could be different for different circumstances. Tax professionals have considerable experience dealing with IRS tax situations and thus can offer valuable tax tips and can effectively represent the best interests of the taxpayer.
The purpose of the IRS is to assess and collect taxes which to some is a mandate to harass and intimidate a taxpayer. That tactic will not work when a tax professional is there to act as a buffer between the taxpayer and the IRS or Franchise Tax Board. In addition, the tax professional often knows as much or more about tax law than the IRS agent.
There are three categories of tax professionals:
1. Enrolled agents ? a tax preparer and tax advisor licensed to practice before the IRS. 2. Certified Public Accountants (CPA) ? state licensed professionals with considerable expertise in taxation, accounting and auditing. 3. Tax attorney ? represent clients with more complex areas of tax law such as appeals, court appearances, tax planning or tax evasion.
There are several advantages to selecting a tax attorney over a CPA when dealing with severe tax problems. For instance, only a tax attorney can provide attorney-client privilege?the right of an attorney to refuse to divulge confidential client information. It is a very important legal concept that keeps communication between an attorney and a client private. This allows the taxpayer to be more candid with the tax attorney. These privileged communications cannot be used as evidence in a trial. On the other hand, all communications between a client and a CPA or enrolled agent is not protected and thus can be used in an IRS investigation or trial.
John Spurgeon is a tax attorney in Pasadena, California servicing clients in the greater Los Angeles area. John Spurgeon & Associates, who are both tax attorneys and CPAs, have the proven knowledge and experience to effectively deal with IRS tax liens or Franchise Tax Board tax issues. For more information, please call 626-440-9518 for a complimentary initial consultation.
About John Spurgeon & Associates
John Spurgeon & Associates is a professional services firm located in Pasadena, California with a focus on tax law and related accounting services. They have extensive experience with federal and state income taxes, payroll taxes and sales taxes. They represent business, non-profits and individuals against the IRS and the Franchise Tax Board (California State Taxes). As both tax attorneys and Certified Public Accountants they offer a broad range of tax related services.
John Spurgeon has sinced written about articles on various topics from Tax Preparation, IRS Tax and tax. John Spurgeon is a native and resident of Pasadena, California. He is a father of eight and a grandfather of seven. He has over 25 years of experience dealing with corporate income tax, individual income tax, tax planning, litigation of civil criminal cas. John Spurgeon's top article generates over 1600 views. to your Favourites.